Blockchain Technology in Construction
Blockchain Technology in Construction
Business Software India • June 17, 2020
What is Blockchain technology?
Blockchain is a Distributed Ledger Technology (DLT), which enables users to have their data stored, open, anonymous, and secured. Blockchain has been a disruptive technology in education, healthcare, supply chain, finance, and construction, and many other sectors. The major feature of blockchain is, it’s secure with the highest possible data integrity, privacy-centric, and open nature.
What are the Use cases of Blockchain in Construction?
The benefit of Blockchain technology implementation in the Construction sector is exponentially huge. The technical and technological issues in Construction can be mitigated completely by DLT technology. Blockchain technology can become part of the industry’s digital transformation process and will require strategic and agile thinking.
Temper proof Technology
The lack of accountability in the construction industry has been an ongoing issue for decades and with extremely squeezed profit margins, firms are poised to find ways to cut corners and deflect blame from the resulting failures. Using the Temper proof Blockchain technology the accountability and traceability are safeguarded. In addition, all the associated accounts can be registered and shared on the blockchain across the parties, hence there is no need for valuable time and resource-consuming additional bureaucracy. Smart contracts can handle these administrative data, accounting documents, and inform each participant through the updated blockchain ledger.
At a construction site, every labour who enters the site passes its ID card for security, health, and safety reasons. The information about who entered and how much time they spent on site working is captured and registered on a blockchain-enabled distributed ledger between the client, the consultant, and the contractor. In this way, there is no additional administration needed to validate this information, as it has already been logged on the blockchain. Based on the agreed terms with regards to the number of worked hours on-site, a smart contract can initiate payment and send payment certifications for all parties.
Sensors at the construction site can measure temperature, which data is then cross-checked with the weather data at that particular part of the city from different websites. This data is periodically assessed by a smart contract and when certain terms are triggered, such as too high or too low temperature, the agreed actions, and compensation events can be initiated automatically. Other sensors can send GPS location of structural elements as they are built or RFID (Radio Frequency Identification) information of the arrived materials to update the project plans and monitor progress. The set of sensors on cranes can update its operational status and its leasing terms which are managed automatically by a smart contract.
Building Information Modelling (BIM) and Smart Asset Management
Imagine that every key stakeholder of a construction project is part of a blockchain empowered network, governance of the network is based on the consensus and agreement of all stakeholders. A sufficiently advanced digital engineering framework can make sure that BIM technology works as a single source of truth for data while putting the audit trail of design approvals, data verification and project management decisions on a blockchain would result in a combined source of truth that covers all aspects of the project.
BSI has potential clients who run their stock exchanges on a completely blockchain-based basis.
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[…] huge. The technical and technological issues in Food safety, Healthcare management, Fintech world, Real Estate Construction will be mitigated completely by DLT technology. Blockchain technology is such a digital […]